Senate unveils pro-business tax cuts

Washington Report

WASHINGTON -- The Senate's tax-writing panel on Friday unveiled $275 billion in proposed tax cuts and credits to be put into President Barack Obama's stimulus plan to jolt the moribund U.S. economy back to life.

The Senate Finance Committee's economic-recovery legislation incorporates much of what the tax-writing panel in the House of Representatives passed earlier this week. It added some provisions desperately sought by corporate America, however, and would waive taxes on unemployment benefits extended to millions of out-of-work Americans.

The Senate legislation also would provide one-time payments of $300 to Americans who are collecting Social Security or disability checks from the government.

"This country is in a world of economic hurt, and Congress has to act boldly now to stabilize the situation," Sen. Max Baucus, D-Mont., the chairman of the Finance Committee, said in a statement introducing his legislation.

Baucus announced his measure soon after top Democrats and Republicans in Congress met with Obama. The new president appealed for quick action in Congress, and Republicans, now the opposition in both chambers, have pledged not to obstruct legislation that economists say is vital to arresting the economic slide.

"I do think we will be able to meet the president's deadline of getting the package to him by mid-February," Senate Minority Leader Mitch McConnell, R-Ky., said after meeting with Obama.

Obama agreed to meet with Republican lawmakers next week to hear their suggestions.